EAST PROVIDENCE, R.I., Nov. 4 /PRNewswire-FirstCall/ -- Today, Capital Properties, Inc. (Amex: CPI) reported net income of $478,000 and $1,343,000 for the three and nine months ended September 30, 2008, resulting in a basic income per common share of $.14 and $.41, respectively. For the three and nine months ended September 30, 2007, the Company had reported net income of $333,000 and $1,202,000, respectively, which resulted in a basic income per common share of $.10 and $.36, respectively.

For the three months and nine months ended September 30, 2008, leasing revenues increased $50,000 and $87,000, respectively from 2007 due to increases in rentals under short-term leases, including rentals from a building purchased in November 2007. Leasing revenues for the comparable 2007 periods included $100,000 in settlement of a former tenant's premature termination of its lease with the Company. For the three and nine months ended September 30, 2008, leasing expenses increased $50,000 and $80,000, respectively, from 2007, principally due to costs associated with the building purchased in November 2007.

For the three and nine months ended September 30, 2008, petroleum storage facility revenue increased $88,000 and $105,000, respectively, from 2007, due principally to higher monthly rent resulting from the annual cost-of-living adjustment and an increase in contractual revenues resulting from the reimbursement by the tenant for certain expenses incurred by the Company totaling $54,000 and $105,000, respectively, for the three and nine month periods. These increases were offset in part by lower contingent revenue due to a reduction in throughput of petroleum products. Exclusive of the tenant reimbursable expenses in 2008, for the three and nine months ended September 30, 2008, petroleum storage facility expenses decreased $4,000 and $98,000, respectively, from 2007 level. The decrease for the nine months ended September 30, 2008 was due to lower professional and engineering fees.